Big Slowdown in Consumer Spending in America
Bank of America just reported a big slowdown in consumer spending in America. Which is a major 2023 recession warning. And suggests that we could see job losses spike in future months with home prices and stock prices declining.
Consumer spending on Bank of America credit/debit cards declined most in Furniture, Home Improvement, and Luxury Goods. While spending still rose for restaurants. Overall, spending was down -1.2% YoY from last April.
Declining consumer spending is a big problem for the US Economy because 70% of GDP comes from spending. So it means our economy is decline. And likely that businesses will continue to lay off workers in 2023.
Another company that had a concerning report was Airbnb. Their stock price is down by 15% in the last week because they had a “muted” outlook for travel demand in the rest of 2023. A slowdown in Airbnb bookings would mean that certain housing markets might have issues. The ones with the biggest drops in occupancy include Miami, Philadelphia, Fort Lauderdale, Austin, San Antonio, and Cape Coral.
Credit to : Reventure Consulting